EXHIBIT 99.1


NEWS RELEASE
For Immediate Release
 
                  ATLANTIC AMERICAN COMPLETES ACQUISITION OF
                 AMERICAN INDEPENDENT LIFE INSURANCE COMPANY;
                     INCREASES LIFE INSURANCE OPERATIONS
                      TO INCLUDE FIVE ADDITIONAL STATES

ATLANTA,  Georgia, October 2, 1997 - Atlantic American Corporation (NASDAQ-AAME)
announced today that, after receiving the necessary  regulatory  approvals,  its
principal life insurance  subsidiary,  Bankers Fidelity Life Insurance  Company,
completed its  previously  announced  acquisition of American  Independent  Life
Insurance  Company.  The  purchase  price was  approximately  $3.6  million in a
combination of cash and a promissory  note.  The  acquisition  expands  Atlantic
American's life insurance  operations into five additional states,  bringing the
total  number of  states in which the  Company  transacts  business  to 33.  The
acquisition expands Atlantic American's presence in the senior market as well as
in the traditional life insurance and supplemental health insurance markets.

In an effort to achieve operational efficiencies,  the administrative operations
of  American  Independent  Life  Insurance  Company  will be moved  to  Atlantic
American's  office in Atlanta,  Georgia and consolidated  with the operations of
Bankers Fidelity.

Commenting  on the  acquisition  Hilton  H.  Howell,  Jr.,  president  and chief
executive officer of Atlantic American Corporation,  stated "We are pleased with
the  completion of this  acquisition,  which  demonstrates  Atlantic  American's
commitment to expand through selective acquisitions and complements our strategy
to grow through the addition of new and enhanced insurance products."

Atlantic  American  is  an  insurance  holding  company  involved  in  specialty
insurance  markets  of  the  life,  health,   property  and  casualty  insurance
industries.  Its principal  subsidiaries  include  American  Southern  Insurance
Company,  American Safety  Insurance  Company,  Bankers  Fidelity Life Insurance
Company and Georgia Casualty & Surety Company.


This release  contains  forward-looking  statements  regarding  the  anticipated
financial  and  operating  results  of  Atlantic  American  Corporation  and its
subsidiaries.  Forward-looking  statements  are  subject to  inherent  risks and
uncertainties  that may cause  actual  results to differ  materially  from those
projected  in  the  forward-looking   statements,   including  the  unsuccessful
integration  of  operations  and  overall  competition  in the life  and  health
insurance industry, and other risks identified in the Company's periodic filings
with  the  Securities  and  Exchange  Commission.   The  Company  undertakes  no
obligation to publicly release any revisions to any  forward-looking  statements
contained  herein to reflect events or  circumstances  occurring  after the date
hereof or to reflect the occurrence of unanticipated events.

For further information contact:

      John W. Hancock                           Janice Kuntz
      Senior Vice President and Treasurer       Golin/Harris Communications
      Atlantic American Corporation             (404) 681-3808
      (404) 266-5738